Rachel Reeves has told the House of Commons in her first major speech as Chancellor that the Conservatives covered up the full extent of the UK’s budget deficit and that since taking office, Labour has discovered a £22 billion black hole in the nation’s finances. She says some unfunded projects will be scrapped altogether, including a road tunnel under Stonehenge; while millions of pensioners will miss out on winter fuel payments which are to become means tested. 

Teachers and NHS workers are to receive a 5.5% pay rise; prison and police officer will get an uplift too, while junior doctors have been offered a backdated 22% increase which is – according to Reeves’ predecessor Jeremy Hunt – one of the reasons for the budget gap that she has discovered.

Is Reeves paving the way for prosperity? Or austerity? Adrian Goldberg hears from Dr Lydia Prieg, Head of Economics at the New Economics Foundation; and Pranesh Narayanan, a research fellow at the IPPR think tank.

Produced in Birmingham by Adrian Goldberg for Byline Audio.

Learn more about your ad choices. Visit megaphone.fm/adchoices